Time appears to be quickly running out for Dowagiac’s “Old Gray” building, as city leaders took another step forward toward the demolition of the vacant warehouse.

City council approved the terms of a $250,000 grant contract with the Michigan Land Bank Fast Track Authority during their regular meeting Monday evening at city hall. The quarter-million dollar deal will provide a large portion of the funding needed to pay for the city’s tear down of the 100,000 square foot building, located just outside downtown on Division Street.

The city applied for grant money for the project through Michigan’s Blight Elimination Program following their acquisition of the structure in spring, with officials receiving notice they had been selected for funding in July.

Since then, city staff has completed asbestos testing inside the blighted structure, and has sent out bid specification to contractors for demolition work, said City Manager Kevin Anderson

“I’m very amazed at how much work has been done since May, when council decided to pick this up,” Anderson said.

The building, constructed by the former Round Oak Stove Company, has been vacant since the mid-90s. Besides being in poor shape structurally, the building has frequently been targeted by vandals and trespassers, officials say.

Bids for the project are expected to come in by Sept. 8. Anderson is looking to have a deal in place with a contractor for council approval by the body’s next meeting, on Sept. 14, he said.

The city manager added that the project, which is estimated to cost between $400,000 and $500,000, could be completed by as early as the beginning of the year.

“One of the contractors that were in looking at it [the building] said that if they got the job they would be done by Jan. 1,” Anderson said.